Qualcomm stock pops 10% on data center infrastructure deal with Amazon

Qualcomm shares jumped 4% on Tuesday after announcing a data center infrastructure partnership with Amazon Web Services, marking a significant push into territory dominated by Nvidia during the AI boom. The deal represents a major validation for Qualcomm as it attempts to diversify beyond its core mobile chip business and compete in the lucrative AI data center market.

The partnership with AWS positions Qualcomm to capture a slice of the rapidly expanding infrastructure spending driven by generative AI workloads. Nvidia has commanded the lion's share of this market, making any credible challenger noteworthy for traders tracking the competitive landscape.

The stock initially rose 10% before settling at a 4% gain, suggesting some profit-taking after the initial enthusiasm. The AWS deal provides concrete evidence that Qualcomm's data center strategy is gaining traction with hyperscale cloud providers, the key customers in this space.